Retention is a concern for companies

Retention is a serious problem and a strategic priority for management today. Employees have become less committed to companies because they believe that companies are less committed to them. This lack of employee trust has produced an increase in the trend to be free agents. People build careers outside the context of the traditional organizational structure. And with increased information available online, employees can more easily focus on the labor market. And the more information they have on other jobs, the more likely they are to leave.

Turnover results in extraordinary costs to the company. For example, there are costs for recruiting, on-boarding, training new employees, decreased productivity, lost customers, lowered morale, and the loss of knowledge and skills. Employers are aggressively looking for creative ways to improve retention and hold onto their valued employees.

Build belonging and identification in your employees

How can companies use identification to improve retention? What are the ways you can develop in your key employees a feeling of identification with the company? How can you create a feeling of devotion in these employees where the employees see themselves as a representation of the company? What can you do to create a workplace where employees feel like the path to being true to oneself is consistent with being true to the company?

Creating a feeling of belongingness or identification with a company is a company specific connectedness and thus more valuable to companies than just having employees who have a commitment to their work. If employees identify primarily with their role as, for example, an accountant, then they can do their work at many companies. Consequently, companies will have a hard time retaining them. But if employees feel like the place where they truly want to do their work is at a particular organization, then this is organizational identification.

When members identify with a company, the employees internalize that identity as a description of themselves.  The company and the worker have a shared destiny. Being true to the organization is a path to being true to oneself.  The company becomes the avenue for satisfying the needs of the employee. In this time of organizational change and diminished employee loyalty, how can a company create a valued workforce that possesses these feelings of identification?  How can a company create a workforce that sees the company as an extension of themselves?

Retention through employee identification

Creating an identified workforce is a complex process (see Figure 1).  Although the formula is not linear, there are five categories that appear to contribute to this valued condition of organizational identification.  Companies that truly want to build an identified workforce must reflect on how well they cultivate an environment that meets these criteria described below.

 1. Retention by creating a sense of ownership

Giving employees the feeling that they own the company is a key element in contributing to feelings of identification.  There are several avenues for creating this sense of ownership.

Being part of a start up

Obviously, being part of a company start up is comparable to birthing the organization and can create that ultimate feeling of ownership. Seeing a company grow from infancy and contributing to many aspects of its success gives employees a special relationship with the organization. Employees create how things operate, and they experience its successes and failures.

By being with the organization from the early stages, employees have extensive knowledge of the company’s history, and this is quite empowering. They know why the company created the rules. Similarly, they know the legends and lived many of the stories. The founders are their friends, not names on annual reports or pictures on walls. They are real people who they communicate with and feel connected to. The dream of these founders has been directly conveyed to these members not through memos or reports but by being individually touched by the message as expressed from the lips of the founders themselves.

Being able to grow with a company as it grows is quite rewarding. The lives of the employees and the lives of the company become connected almost in a way that is inseparable. And this connection contributes to employee identification.

Flat organization and empowered employees

For organizations that are not in a start-up mode, the challenge is creating the environment that simulates many of these traits. Creating a flat organization with empowered employees contributes to feelings of connectedness. With peer-based control rather than hierarchical control, teams feel accountable and responsible.

There are many aspects that create psychological ownership: being a part of the decision-making process; involvement in career decisions and selecting opportunities for development; openness where the company genuinely solicits and does not ignore employee feedback; and genuine autonomy and participation. In this type of setting, employees feel that they can control and contribute to their destiny and the destiny of the company.

Offering some form of financial ownership can also develop feelings of ownership. Employees think and act like owners when you make them owners.  Also, providing opportunities for members to represent the organization to the public is another avenue for creating a sense of ownership in its members. Participating in reputation-promoting activities can heighten one’s pride and feelings of prestige that can promote member identification.

2. Retention by having a family atmosphere

A family atmosphere of being caring, friendly, and open where employees feel a sense of closeness with each other can contribute to feelings of identification. When work feels like family, when it has traits similar to a family relationship and structure, then it provides a nurturing environment for its members. Creating such a warm atmosphere is captivating, gratifying, and to many quite comfortable in a world of change.

People want an organization that loves, nurtures, celebrates, and forgives them. When a company genuinely offers its employees a place to call home, they often feel very connected to it. Being a part of an environment where employees’ thoughts matter and where they can go to anyone and express how they feel promotes confidence, trust, and feelings of satisfaction. Having an organization that is human supports one’s sense of humanity. Creating this family atmosphere where employees work together, play together, celebrate together, and suffer together appears to build a sense of devotion in the employees and makes their work more than an individual expression. It makes work an opportunity to join together with friends to offer a service that is needed by society.

3. Retention by creating a positive sense of self

If employment at a particular company makes employees feel good about themselves, then there is a greater likelihood that the employees will be more identified with the organization and will want to stay with it. There are several factors that can contribute to making employees feel good about themselves and therefore identified with the organization: the success of the company, job satisfaction, earning one’s employment, and opportunities for growth and development.

Successful company

Retention leaders typically are successful companies that have a tradition of excellence. Being a winner is an extremely effective motivator and retention tool. Being a part of an organization that is successful, prestigious, and distinctive makes employees feel good about being a part of such a special organization. Companies highly admired and that receive positive publicity make employees feel special and in some cases like celebrities. They are providing a product or service that is attractive and valued, and thus they are proud to be making this happen. This environment gives employees a heightened sense of gratification that makes work satisfying and a place where they want to be connected to. The company success becomes their success and a part of their own view of themselves.

Job satisfaction

Job satisfaction can also contribute to a positive sense of self and the construction of organizational identification. Employees who view their work as meaningful and believe that they are making an important contribution are more identified with the organization that gives them this opportunity to express themselves in such a significant way. People look for challenging work with growth opportunities. An open environment where companies value and encourage communication contributes to a supportive workplace and a satisfied employee.

Compensation and benefits can also contribute to enhanced job satisfaction. The benefit that matters most to the employee is the one that will promote identification. A company must view benefits from an individualized perspective. For some it is flexible hours while for others it may be childcare or even concierge services. The key is providing benefits that contribute to job satisfaction and promote an identified employee.

Trial period

Some organizations have a process for making potential employees earn their employment during a trial period. After successfully completing that process, only those who earn the right to be an employee are granted such a privilege. Thus, the act of employment is considered an accomplishment that promotes a positive sense of self because the person earns the status. Potential members also begin the process for preparing themselves for entry by internalizing attributes and initiating activities that promote a connection with the organization.

Opportunities for growth and development

If the organization provides people with opportunities for personal growth and development, then this contributes to a positive sense of self and to being identified with the organization that provides those opportunities. Employees feel more connected to companies that are committed to them—to their development, to their well being, and to their desire to develop and grow their skills and competencies.

4. Retention through person-organization-industry fit

Personalities and individual backgrounds are integral factors in creating organizational identification. This foundation begins with the individual’s feelings of comfort and suitability working in a particular industry.

For a person to have job satisfaction, they must enjoy the industry where they do the work. There must be a fit. Certain industries are more comfortable and suitable for an individual than others. For example, the airline industry might be more suitable for someone who desires flexibility in their work because airlines do not always limit their employees to the traditional nine-to-five commitment.

Familiarity with an industry can also contribute to a fit that supports organizational identification. Many work in the same industries as their relatives. For some, that industry is in their blood. This personal connection to this type of work is a match that makes work more satisfying, but it does not ensure identification with a specific organization.

The key for a long-term solution to retention is creating unique ties between the employee and the organization that others cannot easily duplicate. The path for producing an identified workforce is to have people who instinctively support the organization’s distinctive purpose and values. The foundation for the link between the organization and the individual begins with understanding the Core Culture of the organization.

Fit with the Purpose

The Purpose of an organization is the fundamental reason why the organization exists. This Purpose is typically something that benefits society. It is a short statement that is broad in scope allowing the organization to morph yet preserve its essence.

The Purpose statement for profit organizations does not identify the product because this would limit the elasticity of the organization in an environment that demands change. In addition, making money is not the Purpose. All for profit organizations have this as a basis for existence but not as their passion for being. The Purpose matches the passion of its founders or leaders. It is the cause that was the root for the organization’s creation and the answer to the question, “Why is this important?”

The Purpose is the guiding star that provides direction yet is never fully achieved. It is inspirational; it says what we want to be remembered for. Employees need to feel like they work for a cause, not just a business. The cause is the Purpose. People seek meaning in their lives and one key avenue is through their work. It is through the organization that the individual is able to be a part of something larger. It is the chance to make a difference and leave a personal legacy that is meaningful. If that Purpose is a cause that the employees have a personal connection to, then there is a greater identification with the company. Identification can be fostered by nurturing a connection between individual purpose and organizational identity through its Purpose.

Fit with the Philosophy

The Philosophy is the spirit of the Purpose. While the Purpose may not be necessarily unique, that Purpose delivered in a distinctive, special, and unique way—its Philosophy—gives the organization its identity. The Philosophy is the core attribute that is the organization’s source of competitive advantage. The Philosophy is the answer to the questions, “What makes this organization special, distinctive, or different from others in a similar business? What is a unique attribute about the way things work here that makes this organization special?  What is the basis for how people do their work here?” If that distinctive attribute is perceived by the employee as a valued attribute that they personally connect to, then there is a stronger bond between the organization and the individual and greater organizational identification.

Together the Purpose and the Philosophy constitute the identity of the organization—that which is core, distinctive, and enduring about the organization. It is what was, what is, and what will be. It is the true essence of the organization and the foundation and framework for work. The identity is a unique product of circumstances in an organization’s history, strongly influenced by the founders, and not something that can be copied from others. You don’t create it; it must be authentic.

Fit with the Priorities

Outside of the identity but still a component of Core Culture, is the organization’s Priorities. Priorities are the additional core values and key standards. Priorities guide how employees deliver on the Purpose. These values change as the environment changes. Priorities keep the organization competitive. If these values of the organization are consistent with the employees’ own personal values, then there is a greater opportunity for having an identified workforce.

When employees are emotionally connected to the service that the company provides to society and anchored to the spirit and values of the organization, then there is a bond that the organization nurtures. The company’s Purpose and spirit for doing business meet the employees’ needs in a way that is satisfying. Personal needs are fulfilled by this membership. The organization provides the opportunity for giving meaning to members’ lives. This congruence of personal interests and organizational activities can contribute to feelings of identification.

Fit with Vision

The next component for creating an identified workforce is the person’s fit with the organization’s future. Do members share the vision of the organization? The future of the organization is also the future of its employees. The more that the employee identifies with that future, where employees see the organization’s future as their own personal future, the more they will be identified with the organization.  The vision for an organization is a specific destination. It is something concrete and you can achieve it. It needs to be a stretch, but it is attainable. Because employees need to know if the organization achieves that vision, the vision must be measurable. Visions are often relative to the competition, such as to the #1 in a particular industry or to beat their primary competitor in some measurable area, but ultimately visions should be intrinsic to lead to greatness.

The key for an identified employee is for the vision of the organization to reflect one’s own personal vision. And when company leadership share a vision for the organization that members can see as a vision for themselves, then such a bond can create member identification. The organization then becomes the avenue for individual expression. It’s not the presence of a goal that stimulates progress, but the level of commitment to that goal.

Alignment with Practices

For an organization to be healthy and identified employees, the Practices of the organization must be aligned to the Core Culture and to the vision. These internal and external Practices as well as how the company Projects itself to the public keep the Core alive, move the organization toward its vision, and sustain an identified workforce. For organizational identification to exist and continually be nurtured, an organization must also possess this Core Alignment. These procedures, processes, practices as well as projections are the elements of the organization that are flexible; they can change to keep the organization competitive. As you move further from the center Core, the attributes are more fluid. If these Practices and Projections are aligned to the Core Culture and vision, then it promotes a strong culture that retains identified employees.

Hiring and selection practices

One critical lever in creating an identified workforce is hiring and selection. Exhaustive procedures are critical for recruiting new employees. An alternative to retention is simply to get better at recruiting—finding employees who are more likely to stay. A number of companies are unsophisticated about hiring and use methods such as unstructured interviews that result in poor selection choices.

In most hiring and selection practices, job fit is the primary focus. The company tries to determine if the potential employee has the critical skills for a specific job. A component of the selection process that companies often neglect is organizational fit or cultural fit. This is screening employees to determine if their values and personal attributes  align with the organization’s Core. The focus should be to select the right people, not just good people or talented people. Finding people who have a personal connection to the Purpose and who are aligned with the Philosophy and Priorities of the organization is key to selecting employees who will identify with the company.

The degree of cultural fit and value congruence significantly predicts turnover and job performance. It is critical that an organization selects people who naturally fit into the culture, who share the distinctive Purpose and core values of the organization and who will contribute to achieving the vision. People seek organizations with values and beliefs similar to their own. When you screen for organizational fit, the people you hire are already on their way to fitting in. The right people are your most important asset. The right people are those who would exhibit the desired behaviors anyway, regardless of any control and incentive system. This level of screening allows and demands variety and diversity in all other aspects of the organization.

Socialization process

The socialization process is a critical point for preparing employees for an organization that matches those personal interests and needs with the organization’s Purpose, Philosophy, Priorities, and vision.  On-boarding is an important opportunity to build understanding and promote organizational identification and therefore retention.

5. Retention by sharing a crisis

Although an organization would not choose to create a crisis to promote organizational identification and retention, such a crisis sets the stage for members to examine their organization and the degree to which they feel connected to it. If employees identify with their company, then experiencing a crisis can actually strengthen that identification. If there is a genuine sense of identification prior to a problem, then the problem actually becomes a vehicle for binding the workforce together. They often become even more united, especially if they attribute the situation to factors beyond the organization’s control.

Intergroup conflict can unite

Also, if the crisis can be attributed to an intergroup conflict, then this can increase ingroup solidarity and cooperativeness. A threat from an external cause rather than an internal deficiency produces a pressure for unity and uniformity. The crisis can serve a solidifying effect that cements feelings and connections.

The severity of such a bad time can actually bring people together in a way that no other experience can duplicate. There is a deep feeling that such an experience creates; it is not a superficial connection. Sharing such a crisis is truly a collective problem. It causes members to feel pain together, cry together, fear for their futures together, and stay together for support. There is truly a sense of we-ness, which can contribute to further strengthening the cohesiveness.  Although outsiders are aware of the trauma of such events on the organization’s members, only the members can truly understand how this impacts their lives.

Being united through crisis, media attack, or other identity threatening event causes identified members to cling onto each other. They seek support and emotional strength. The options are somewhat black and white. Either stand behind the company that one feels so connected with or give it all up. It is not just their jobs at stake. They are providing a service that they believe in with leaders that they are loyal to. They are working for a higher purpose. In addition, they unite around a superordinate goal. Thus, through such a crisis, identified members are willing to make sacrifices for their company. They do that because it is a large piece of themselves.

Crises nurtures resilience

Crises allow a greater strength to emerge, and this strength endows employees with resilience and the capacity to endure. Sharing a crisis often has a homogenizing effect. Those not identified with the company typically bail out and those who feel connected cling on with greater fervor. The continuation of outside threats that cannot be met can eventually wear down members if the attacks are not adequately managed.

Conclusion

In addition, some people may not have a propensity to identify with an organization. They may prefer to work on their own–rather than be a part of a group.

Constructing an environment of identification–to improve retention– is not a simple formula.  It is a complex collection of conditions that together produce such feelings of belonging and connection to an organization. It is the path not only to creating an identified workforce but also to managing retention and achieving organizational excellence.

Contact Sheila to help you increase retention

Contact Sheila to guide you in increasing retention in your organization. Her firm Workplace Culture Institute is based in Atlanta, serving clients globally.